REQUIREMENT TO START YOUR OWN BUSINESS

Wholesale Business Setup

While this list is intended to help you set up your business, it is no substitute for taking action. The best business in the world won’t work if you don’t work. You don’t have to have all the equipment in the world to play baseball, just a ball and a stick. The same applies for wholesaling. Get the basics and get your business started TODAY!

Computer

            I’m guessing since you’re reading this, you already own a computer.  If you don’t have one, this item should go to the top of your list.  You will be on the computer researching properties, running comps, doing marketing campaigns and a whole lot of other money making activities with your computer. 

            Personally, I use a Dell desktop and a Sony laptop.  I’ve never a problem with either and would recommend them to anyone.  Brand is not as important as actual usage of the computer.  You’ll be on it a lot so pick one with which you are comfortable.

Fax machine

            A fax machine is a pretty simple one.  Nothing complicated or fancy, although it does help if your fax machine doubles as a printer, scanner and fax (all in one).  You should be able to find a good one at a great price on Craigslist or Ebay.  Just so you know, I use a Canon, but Dell’s are good too.  Both companies make quality machines.

Printer

            Again, my fax, printer and scanner are all in one.  I recommend this, since multiple machines in my office get to be a distraction.  That is one thing you will want to be aware of…maintaining a distraction-free work place.  Doing this will increase your productivity and ultimately your profitability.  That’s why you’re here, right?

High-speed internet connection

            This one is kind of a no-brainer.  Have you spent any time on a dial-up or broadband connection and then switched to a high speed cable or phone line internet connection?  There is a HUGE difference in going with high speed.  I want to set you up for success and high speed internet is the best way to go.  Trust me…you will be on the internet a ton and your time is valuable. 

Digital Camera

            This is an absolute must for any serious wholesaler.  Selling property without pictures or video is tough to do, at best.  People are visual and buyers will need to see pictures (or video) of the house to know if they are interested in buying from you.  Plus, with all the properties you will be looking at, you will need pictures of each house for your own personal reference. 

            You don’t need a fancy camera.  Even a iPhone has good enough picture and video quality. You don’t need a high end SLR, just a regular $100 digital camera will work fine. 

Comping Service:

Comps, or comparable sales, are just that…comparable (or similar) sales to your subject property.  Comps are the way wholesalers determine value or FMV (fair market value) for each property.  Making offers without knowing what similar houses are selling for is like throwing darts in the dark.  You may hit the board every now and again but I want to set you up for fast success.

Now, whatever comp service you choose to go with, I highly recommend obtaining training on how to best use the service.  Some of them can be very detailed and receiving training will help you bust the learning curve and get you into the real world of making offers, then making money.

Most comp services require a subscription, AKA they cost, but a paid service is well worth it.

·         RealQuest.com (paid)

·         SiteXData.com (paid)

·         Realtor.com (free)  I don’t recommend using a free service but if you have no other choice, then it is what it is. 

Video Camera (optional but helps a lot)

            Video is huge!  Video is HUGE!  Maybe I wasn’t clear the first time…VIDEO IS HUGE!!!!!!!  The video camera you use doesn’t have to be fancy, it just has to work.  And, you have to be able to download it to your computer and then upload it to the internet.

            If your phone or digital camera doesn’t take good quality video, invest the money to upgrade to one that does.

Email Marketing Service

            Aweber.com is the service I use to keep track of all my contacts and send out my wholesale email newsletters. If you are serious about investing in real estate AT ALL, you need to use an email service to send out your messages to multiple people. The reason I use Aweber is because of the simplicity factor.  I’m not a tech nerd but I do need a website to keep all my email addresses organized and send out newsletters. 

            This service does cost but the cost is well worth it.  It’s not much either.  Something like $20-30  per month. Send us a message at Insider@SmartLazyInvestor.com and we will send you a referral link to get a free month or a $30 credit.  

Click2Mail.com

            This is one of the best postcard mailing services out there.  When I first got started in the business, I had zero money to work with.  What does that mean?  That means I spent evenings hand writing addresses on postcards, licking stamps and stamping my return address on every postcard before they went out. 

            There is a better way and that way is Click2Mail.com.  With this service you can send postcards, flyers and more.  It’s a tremendous marketing tool and will free up a lot of your valuable time. 

            Set up a free account with this service and tap into their knowledge base on how to send out postcard campaigns.  Test it out with a postcard to yourself and a few friends so you can get the hang of it.  This is an important one to know and will lead to a great deal of calls, offers made and ultimately, assignment fees.

Local Sign Company

            The reason you need to find a local sign company is to save on the shipping costs of bandit signs.  Plus, when you run out or need more signs now, it’s great to have someone to call that can help you out.  Normal delivery time ordering signs online is about 2 weeks and sometimes that’s just too long to wait.

            First thing, you will need to do is order 100 blank yellow 18x24” coroplast signs.   The rate I pay is $1.10 a sign and if someone is quoting double that or more, keep searching.  You will be using a lot of these blank signs and it is important to find someone that can hook you up at a reasonable price.

Set up an account with Craigslist.org

            This one is super easy to do.  Go to Craigslist.org and click on ‘My Account’.  From there you will click on ‘Click Here to Sign Up’ and the rest is step-by-step. 

            Craigslist is one of the most valuable marketing resources on the internet and the best part is, it’s free!  If you are not familiar with this site, become familiar.  NOW!

            Not only will we be using Craigslist to buy and sell houses but it is also a great tool to gauge what is going on with the wholesale market in your town.  

Here’s your first Craigslist exercise:  Go to Craigslist and click on your state, then city.  Go to the tab ‘Search Craigslist’ on the left hand side of the page and type in the word, Wholesale.  After you do that, click the down arrow where it says ‘For Sale’.  You want to select ‘Housing’.  This will pull up all the listings for wholesale houses in your market.  I do this on a weekly basis to see what the competition in my city is doing.  Plus, it’s a great resource for wholesale deals (more on that later).

Set up an email account

            I recommend having an email account for wholesaling that is separate from your personal account.  Not only does this position present you as more of a professional, it’s just easier to avoid distractions when you are working, thus saving valuable time and making you more money.  When choosing a business email address, make it something that is clearly business-related.  BradBuysHouses@yahoo.com  or HoustonHomeBuyer@gmail.com.  Have some fun with it but make it clear who you are.

            Personally, I use Yahoo and Gmail.  Both are solid services and best of all…they are free. 

Business cards

            There are two types of business cards you will need:

1)      A professional looking card to present to Buyers and Sellers.  This card should have your name, phone number, website and company name on it.   Only order 500 of these to start. It should cost no more than $20.

2)      An obnoxious, attention-grabbing card that will attract seller leads.  Order as many as you can afford. I recommend at least a thousand.

            Business cards are used for two reasons.  The first is to present to sellers when you first meet them.  This will help your business credibility.  The second is to attract leads.  This one is the most fun.

            I leave ‘We Buy Houses’ business cards everywhere I go.  Wal-Mart, the grocery store, the gas station, the bank, in the bathroom of every restaurant I go to…yes, I turned it into a game.  I’m posting them up on bulletin boards, putting them on car windshields, leaving them at vacant properties I drive by...let your imagination and creativity go wild.

            I’ve also used the dollar bill cards that look like money but are really a We Buy Houses card.

The thing with business cards is, the more you leave in public, the better chance someone who needs to sell a house will see it.

            The message should be simple: 

• We Buy Ugly Houses
• We Pay Cash and Close Quick
• Your name
• Phone number

Straight-forward and to the point has been successful for me.  The color of the card needs to be attention-grabbing…neon green, pink or orange. 

*The important thing with business cards is to get them out there and leave them everywhere.

Dedicated office line/cell phone

You need to have a separate phone line for all your business calls.  Make sure the voice mail message is professional as this will only help your image and credibility.

Fold out Map of your city

            These maps can be obtained at your county engineer’s office.  They will only cost you a buck and will be of tremendous value.  Hang this on the wall of your office.

Map book of your city. 

This is a portable map book that has a plastic cover and separate pages for specific streets/areas of your city.  I used to use a black and white book but have since upgraded to the full color version.  You can grab this from WalMart or your local book store and it will cost you between $5 and $30.   This needs to be with you in the car every time you leave the house.

Magnum black markers

            These are humongous black markers that can be purchased online.  Google ‘Magnum Markers’ and you will have plenty of places to buy from.  We buy them in boxes of 12 from Amazon for under $25 including shipping.

Set up an LLC

            If you want to do it right, contact your attorney (if you don’t have one, this is the perfect opportunity to look for a title company) and ask them to set up an LLC for you.  It shouldn’t cost you more than a couple hundred bucks, but it is well worth it. 

            Doing business in your own name is okay but I don’t recommend it.  Plus, you always want to be aware of your image or positioning.  If you have a company name, you will come across as more professional and will probably be taken more seriously.  Also, you can set up an LLC through your Secretary of State’s website.  This is a highly recommended step, as you are laying your foundation and setting up your very own wholesaling business.  Let’s do it right!

TO SETUP A BUSINESS IN MEXICO

To Set up a Business in Mexico

   

 In this section we will look at the requirements and procedures of Federal Entities, which are not only the first ones that must be complied with, but also compulsory for setting up any business in Mexico. The name of the company to be established must be authorized by and registered with the Ministry of Foreign Affairs (SRE). The relevant application form may be obtained from the SRE web site. If you qualify for the SARE (please refer to the following section), you may be able to obtain your registration in 24 hours complying with all the requirements (application form and payment of $555.00 Mexican pesos) If there is no reply from SRE, then you are automatically registered. Any modifications to the by-laws of your already registered corporation must be authorized by SRE. You may contact SRE through its website www.sre.gob.mx or at any of its regional offices throughout Mexico. After you have registered at SRE, you must register your corporation with a Notary Public. Once you meet all the requirements of the notary public, you will have your by-laws and all the proxies necessary to be considered a corporation. Once the by-laws of the corporation have been signed, the notary public will register it at the "Registro Federal de Causantes (RFC)" (Corporation''s tax number to pay federal taxes) with the Tributary Administration Service of the Ministry of Finance and Public Credit (SHCP). Its website www.shcp.gob.mx is a source of information that you may find useful. There is also the obligation to register your corporation at the Treasury of the State and Municipality where the company is going to be established in order to comply with local tax regulations and obtain the incentives offered by these authorities. You will also have to register the company books at the nearest SHCP office to your company. Any corporation planning to provide any type of financial services will have to be authorized and registered at the corresponding offices of SHCP. Please consult its website. If your corporation is planning to import any machinery and/or equipment for its operations, it must obtain a permit from SHCP in order to do so. It is important to obtain the RFC of your corporation given that this tax registration code is considered the starting point of the corporation and any other registrations, authorizations and information requirements by other authorities are scheduled according to the RFC date. All foreign corporations must be registered or informed to the National Registry of Foreign Investment (RNIE). You have 30 days after receiving your RFC to comply with this requirement. This may be done at the General Foreign Investment Department, of the Ministry of the Economy, the office responsible for the RNIE and which receives quarterly reports from your foreign corporation. For more information, please consult the website www.economia.gob.mx . Please refer to the Foreign Investment Law, articles 4 to 19 to comply with the percentages of foreign investment in different sectors of the economy. You will find this Law in the "Legal Framework" section of this website. SE (the Ministry of the Economy) is also the authority that issues permits for temporary and definitive imports of products and materials, as well as permits for registering foreign corporations at the corresponding Public Registry and the "Prosecs" and manufacturing registries. Please contact the SE website to get more information on these procedures. After obtaining your RFC, your corporation has 10 days to present the "starting business" and "functioning" documents to the Secretariat of Health and/or the corresponding state and municipal authorities. Another proceeding is the registration of any residues that your corporation may produce in its manufacturing processes, before the Secretary of the Environment and Natural Resources and/or the corresponding state and municipal authorities. The hiring of workers to perform the tasks of your corporation involves another registration procedure with the Secretary of Labor and Social Planning (STPS). Within 24 hours your corporation''s "plans and training programs" are registered and authorized by STPS in 24 hours, and if there is no reply from the authority, then they are automatically approved. The registries of the "mixed training commission" and the constitution of the "security and health commission" for company employees must also be filed. You must register your company and employees in the Mexican Institute of Social Security (IMSS) within 5 working days of hiring staff. By so doing and filling in another application form, the INFONAVIT and SAR registrations are provided automatically. All foreign employees must get their corresponding immigration status from the Secretariat of the Interior (SG). All corporations have to be registered at the corresponding "Public Registry of Property and Commerce". This registration is usually performed by the notary public who constituted the company. If the corporation is involved in manufacturing processes that require special types or large amounts of power, it has to register before CFE (for electricity) Luz y Fuerza (special connections to power supply) and Pemex (gas or other combustion fuels). We strongly recommend that your lawyers, accountants and/or consulting firms be familiar with the company and its operation so that they can help you to obtain these and other local registrations and authorizations. The SARE System The "Sistema de Apertura Rapida de Empresas" (SARE) (Fast Corporation Registry System) is a new mechanism to help set up corporations quickly and efficiently with the acceptance and approval of the Federal, State and Local authorities throughout Mexico. This system was launched on March 1, 2002 and is run by COFEMER; a public corporation. Its main purpose is to ensure that any new corporations set up perform one of the 658 main activities carried out by 80% of the companies operating in Mexico, and that it is a micro, small or medium sized business. It also requires that any new corporation''s main activities are low risk operations. To find out about these 658 economic activities, please visit: http://www.apps.cofemer.gob.mx/sare/anexo5.pdf SARE will allow you to set up a corporation in 24 hours, after filling the corresponding application and fulfilling the requirements of the authorities. Once you have received your RFC (Corporation´s Tax Number), you have 3 months to comply with the other Federal, State and Local registries and requirements without being summoned or inspected by any authorities. SRE (Ministry of Foreign Affairs) These are the applications and procedures that this Secretariat has for setting up a corporation in Mexico.(the name of the procedures and applications are based on the description given in the Cofemer website). SRE-01-001 Certificate for setting up a foreign company. SRE-02-001 Registration of company and name http://www.sre.gob.mx/tramites/legales/sa-1.doc SRE-02-002 Any modification to the company by-laws. http://www.sre.gob.mx/tramites/legales/sa-2.doc SRE-02-003 To acquire property from a Mexican company set up in a restricted zone. http://www.sre.gob.mx/tramites/legales/Aviso10.doc and http://www.sre.gob.mx/tramites/legales/Aviso16.doc SRE-02-004 To acquire property in a non restricted zone. http://www.sre.gob.mx/tramites/legales/s1.doc AUTHORIZATION PERMIT TO CREATE A FIDEICOMISO (TRUST) IN RESTRICTED ZONES According to article the 27th , paragraph I of the Constitution of the Mexican United States, Foreigners are not allowed to acquire direct control of land and waters in the 100 km line along the borders and 50km line along the coast lines. They are allowed to use real estate in the restricted zones only through the creation of a Fideicomiso which is regulated by the 2nd section of the Foreign Investment Law. The authorizations issued by the Secretariat of Foreign Relations to create Fideicomisos, allow foreigners (persons or corporations) to use real estate located in the restricted zones. Even in association with Mexican societies. This use is for a maximum of 50 years. The Fideicomiso must be notarized and registered in the Public Registry. The authorization is given to credit institutions (banks) so they can acquire, as Fiduciario (Trustee), the control of the real estate and, according to the Fideicomiso , the use of such real estate to foreigners. This authorization shall be in a written form. The banking institution shall present a written statement that contains the following requirements: REQUIREMENTS: A. Name and Nationality of Fideicomitente (Setler). B. Name of the Credit Institution (Bank) that will act as FIDUCIARIA. C. Name and nationality of FIDEICOMISARIO (Beneficiary) and in due case, of the substitute FIDEICOMISARIOS. D. Term of the Fideicomiso. E. Type of use that shall be given to real estate. F. Description, location and area of real estate subject to the FIDEICOMISO. G. Distance of real estate to restricted zone. H. Annex that contains the measures and the areas next to the real estate. I. Payment of the legal rights for the amounts established in sections III and V of the 25th article of the Federal Law of Rights, in any banking institution through the form number 5 of the Tributary Administration Service (SAT). J. Original and copy of the application form. Every application form for this permit shall be resolved by the Secretariat of Foreign Relations, within 5 working days of its filling, when filled in a central administrative authority, or within 30 working days when filled before the State Delegations. The permit or resolution will be given to the interested person, or someone authorized by him or her, after being identified. COSTS AND ANSWER TIMES FOR PERMITS TRAMIT ANSWER TIME COST Authorization for the constitution of Corporations. The same day if applied before 11:00 AM $ 565.00 (Mex) for the reception examination and resolution. Authorization to modify the corporation´s by-laws (Change of Denomination or RAZÓN SOCIAL) The same day if filled before 11:00 AM $ 505.00 (Mex) for reception, examination and resolution. Notification for the use of Authorization for corporation establishment or modifications of its by-laws. On time $210.00 (Mex) Extemporary $1,130.00 (Mex) Acquisition of Real State outside of the restricted zone referred to in the General Agreement published on March the 2nd, 1998, in the Federation?s Official Gazette. two working days. $ 4,070.00 (Mex) for the reception, examination and granting of the authorization. Acquisition of real state by foreigners outside the restricted zone referred to in the 10th article of the Foreign Investment Law. two working days. $ 230.00 (Mex) for reception and examination; and $ 4,070.00 (Mex) for authorization. Concession for the exploration and exploitation of mines and waters in national territory referred to in the General Agreement published on May 11th, 1998, in the Federation?s Official Diary. two working days. $ 4,070.00 (Mex) for reception, examination and granting of the authorization. Concessions for the exploration and exploitation of mines and waters in National Territory referred to in the 10th article of the Foreign Investment Law. two working days. $ 230.00 (Mex) for reception and examination; and $ 4,070.00 (Mex) for authorization. Authorization for establishing a Fideicomiso in a restricted zone. three working days. $ 230.00 (Mex) for reception and examination; and $ 8,385.00 (Mex) for authorization. Authorization to modify thenature and subject of the Fideicomiso. three working days. $ 230.00 (Mex) for the reception and examination; and $ 3,775.00 (Mex) for authorization. Authorization to modify the duration of the Fideicomiso contracts. Within three working days. $ 230.00 (Mex) for reception and examination; and $ 4,335.00 for the authorization. Filling of each notification of acquisition of real estate by Mexican societies including the clause of admission of foreigners in a restricted zone, for non residential purposes. On time $570.00 (Mex) extemporary $4,390.00 All others not specified above. past sections $275.00 (Mex)